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The world's fourth-largest tobacco company is considering entering the United States, a move that could have a big impact on two large Triad companies. Imperial Tobacco Group plc, a British company, sees the United States as a potentially profitable market with less risk of lawsuits than there was three or four years ago. CEO Gareth Davis told news agency Bloomberg last week that he considered the U.S. an attractive market. Such a move would likely shake up the U.S. cigarette market, and could pose new challenges to Winston-Salem-based Reynolds American Inc. (NYSE: RAI) and Greensboro-based Lorillard Tobacco Co. (NYSE: CG). Imperial is considerably larger than either of those companies, earning revenues of about $21.5 billion in 2005, based on Monday's exchange rates. By comparison, Reynolds, the second-largest U.S. tobacco company, had total revenues of $8.3 billion in 2005 and Lorillard, the No. 3 cigarette company, had revenues of $3.6 billion. Philip Morris USA, the country's biggest cigarette maker, had sales of $18.1 billion in 2005, though that was just a fraction of its overall business, as its parent company, Altria Group, brought in another $45.3 billion in overseas cigarette sales and $34.4 billion from its food operations. Imperial's cigarette brands include West and Davidoff. It already does business in 130 countries.


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Davidoff Cigarettes

Manufacturer:

Davidoff Cigarettes


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Davidoff is a popular German brand of high-end tobacco products (mainly cigars and cigarettes), produced by Imperial Tobacco following its purchase of Reemtsma Zigarettenfabriken.

The tobacco products are produced under licence of Davifoff & Cie, founded by Zino Davidoff and based in Geneve, Switzerland. The company also produces a line of high-end perfume, coffee, and fashion accessories.

In some countries, several varieties of vodka are also produced or sold under the brand. The cigarette line includes the standard "classic", "mild", "Lights/Gold", "ultra lights" and "menthol" flavours, as well as the more expensive rich "Magnum" flavour. Due to legal issues, the sale of Davidoff cigarettes is prohibited in the United States, however they can still be ordered from discount cigarette merchants on the Internet.

Davidoff cigars can however be found in most smoke shops throughout the globe, including the United States.

Davidoff continues to be our international flagship brand. Volumes grew by an average of 15 percent across all our regions in 2004, demonstrating Davidoff's international appeal.

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